Cash Accounts Receivable AFS Securities Prepaid Insurance Trading Securities Supplies Inventory Total Current Assets Noncurrent assets...
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Cash Accounts Receivable AFS Securities Prepaid Insurance Trading Securities Supplies Inventory Total Current Assets Noncurrent assets That's a Wrap Balance Sheet December 31, Year 2 and Year 1 Assets Year 2 Year 1 190,400 157,000 40,000 45,000 13,000 11,000 15,000 12,000 10,000 20,000 5,000 8,000 84,600 42,000 358,000 295,000 Property, plant, and equipment 190,000 200,000 accumulated depreciation (33,000) (30,000) Patents 9,000 10,000 Total Assets 524,000 475,000 Liabilities & Stockholders Equity Liabilities Dividends payable 17,000 10,000 Accounts payable 35,300 50,000 Wages payable 8,000 10,000 Interest payable Income tax payable Notes payable Total Current Liabilities 10,000 40,000 42,000 20,000 110,300 132,000 Noncurrent liabilities Deferred tax liability 11,400 10,000 Bond Payable 190,000 190,000 Discount on bond payable (5,300) (10,000) Total Liabilities 306,400 322,000 Stockholders' Equity Preferred stock 10,000 10,000 Paid-incapital-excess of par 3,000 3,000 Common Stock 88,000 60,000 Paid-incapital-excess of par 7,000 12,000 Paid in capital-share repurchase 6,000 8,000 Retained Earnings 108,600 60,000 AOCI (2,000) 1,000 Treasury Stock (3,000) (1,000) Total Stockholders' Equity 217,600 153,000 Total Labilities & Stockholders' Equity 524,000 475,000 That's a Wrap Income Statement For the Year ended December 31, Year 2 Sales Revenue Cost of goods sold Gross profit Operating Expenses Operating income $ 1,169,000 500,000 669,000 547,000 122,000 Non operating revenues/(expenses) Unrealized gain on Trading Securities 2,500 Dividend Revenue 30,000 Interest expense (40,000) Loss on sale of Trading securities (1,500) Loss on sale of PPE Income before taxes (3,000) 110,000 income tax expense Net Income Additional information: 39,600 es $ 70,400 1. PPE with a cost of $20,000 and a book value of $15,000 was sold for cash. 2. PPE was purchased during the year for cash. 3. No patents were sold. 4. Assume Accounts Receivable relate to sales and Accounts Payable relate to purchases of inventory. 5. 2,000 shares of common stock, originally issued for $5 per share, were retired at a cost of $6 per share. 6. The only item in Accumulated Other Comprehensive Income is Unrealized Gains and Losses on AFS. 7. Any purchase or sale of investments was a cash transaction. Required: Prepare a statement of cash flows for "That's a Wrap" using the direct method. Cash Accounts Receivable AFS Securities Prepaid Insurance Trading Securities Supplies Inventory Total Current Assets Noncurrent assets That's a Wrap Balance Sheet December 31, Year 2 and Year 1 Assets Year 2 Year 1 190,400 157,000 40,000 45,000 13,000 11,000 15,000 12,000 10,000 20,000 5,000 8,000 84,600 42,000 358,000 295,000 Property, plant, and equipment 190,000 200,000 accumulated depreciation (33,000) (30,000) Patents 9,000 10,000 Total Assets 524,000 475,000 Liabilities & Stockholders Equity Liabilities Dividends payable 17,000 10,000 Accounts payable 35,300 50,000 Wages payable 8,000 10,000 Interest payable Income tax payable Notes payable Total Current Liabilities 10,000 40,000 42,000 20,000 110,300 132,000 Noncurrent liabilities Deferred tax liability 11,400 10,000 Bond Payable 190,000 190,000 Discount on bond payable (5,300) (10,000) Total Liabilities 306,400 322,000 Stockholders' Equity Preferred stock 10,000 10,000 Paid-incapital-excess of par 3,000 3,000 Common Stock 88,000 60,000 Paid-incapital-excess of par 7,000 12,000 Paid in capital-share repurchase 6,000 8,000 Retained Earnings 108,600 60,000 AOCI (2,000) 1,000 Treasury Stock (3,000) (1,000) Total Stockholders' Equity 217,600 153,000 Total Labilities & Stockholders' Equity 524,000 475,000 That's a Wrap Income Statement For the Year ended December 31, Year 2 Sales Revenue Cost of goods sold Gross profit Operating Expenses Operating income $ 1,169,000 500,000 669,000 547,000 122,000 Non operating revenues/(expenses) Unrealized gain on Trading Securities 2,500 Dividend Revenue 30,000 Interest expense (40,000) Loss on sale of Trading securities (1,500) Loss on sale of PPE Income before taxes (3,000) 110,000 income tax expense Net Income Additional information: 39,600 es $ 70,400 1. PPE with a cost of $20,000 and a book value of $15,000 was sold for cash. 2. PPE was purchased during the year for cash. 3. No patents were sold. 4. Assume Accounts Receivable relate to sales and Accounts Payable relate to purchases of inventory. 5. 2,000 shares of common stock, originally issued for $5 per share, were retired at a cost of $6 per share. 6. The only item in Accumulated Other Comprehensive Income is Unrealized Gains and Losses on AFS. 7. Any purchase or sale of investments was a cash transaction. Required: Prepare a statement of cash flows for "That's a Wrap" using the direct method.
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